Supporting Private Sector to meet the energy needs of rural communities in Africa

The AECF renewable energy financing is US $145 million with US $62 million dedicated to REACT SSA. About 510 million people in sub-Saharan Africa (SSA) currently have no access to electricity and will not get grid access in the foreseeable future, resulting in a steady increase in the number of people without electricity until at least 2025.

The slow progress and high cost of conventional solutions to the household energy crisis means that cheaper and more accessible new clean technologies offer a better chance of improved access to energy for rural households in the foreseeable future. Over the last decade, clean energy technologies have become more economical than conventional generation for many applications, and the regulatory environment to facilitate their application has improved. Risk and market failures restrict innovation and prevent the development and use of successful business models and technologies.

State-owned Ethiopian Electric Power (EEP) is inviting expressions of interest (EOI) from qualified consultancy firms to provide consultancy services for the feasibility study of Melka Sedi Thermal Power Project. The EOI is expected to lead to a request for proposal (RFP) for the above mentioned consultancy services from short-listed applicants. The purpose of this feasibility study is to assess the technical, social, and economic viability of the utilisation of the Prosopis Juliflora biomass resource in Afar National Regional State to generate 137.5MW with a new thermal power plant in Melka Sedi, 270 km from Addis Ababa.

The European Investment Bank (EIB) is to provide US$25 million in financing to off-grid solar product distributor d.light to strengthen access to energy in Africa via solar kits, starting off in Ethiopia, Kenya, Nigeria, Tanzania and Uganda. The solar kits use a pre-payment system that makes them financially accessible to low-income consumers. The EIB financing will go particularly towards rural and suburban populations and micro-entrepreneurs. It will also enable d.light to develop the installation of its solar kits, which including PV panels, lamps and low-energy equipment such as radios and TVs.